The IASB Extends Support for Covid-19-Related Rent Concessions

The IASB extends by one year, the application period of the practical expedient in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions.

In response to calls from stakeholders and because the covid-19 pandemic is still at its height, the IASB has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before June 30, 2022.

The original amendment was issued in May 2020 to make it easier for lessees to account for covid-19-related rent concessions, such as rent holidays and temporary rent reductions, while continuing to provide useful information about their leases to investors.

The amendment is effective for annual reporting periods beginning on or after April 1, 2021.

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